supply-chain

Barrick recognizes that the conduct and behavior of our suppliers, vendors and contractors can affect – both positively and negatively – the quality of our workplace and the environment, the lives of people in local communities, as well as our reputation and ability to operate effectively. 

We expect and demand that our supply chain partners uphold Barrick’s principles of ethical business conduct and respect for human rights. As a company we strive to do business only with those suppliers who share these principles.

We conducted due diligence on approximately 95% of new mining operations suppliers in 2016—more than 1,100 vendors.

Our Approach

Barrick’s approach to working with suppliers is based on the principle of partnership: we believe that, by engaging with our supply chain partners, we can create mutual and lasting value. To this end, we work closely with our supply chain to pursue fair-minded competition, continuous improvement and a mutual focus on ethical conduct.

As part of this approach, we have adopted a Supplier Code of Business Conduct and Ethics. The Code is designed to create value for both our stakeholders and for Barrick by governing the conduct of suppliers and contractors doing business with us. It covers important issues such as anti-bribery, anti-corruption, and human rights – principles Barrick holds dear and expects our partners to share. It is our intent to deal with suppliers who have accepted and self-certified against the Code.

Once Barrick agrees to do business with a supplier, relevant contracts will contain human rights compliance provisions; we may also provide focused training to certain suppliers. Under our Human Rights Policy, suppliers are expected to report human rights issues if and when they become aware of them. We will also ask relevant suppliers to periodically provide certifications that they are not aware of any unreported human rights allegations. Where appropriate, we will  investigate the behavior of existing suppliers and contractors related to human rights issues.

Our Progress

  • In 2016, 95% of new mining operations suppliers (more than 1,100 vendors) received due-diligence screening under the Vendor Onboarding Standard. The onboarding process covers the Supplier Code of Conduct, Barrick’s human rights program, and anti-corruption, as well as adherence to the company’s safety and environmental standards. Our goal is to bring all of the existing supply base onto the vendor onboarding system by the end of 2017 and to achieve 100% compliance to our vendor onboarding system including additional screening activities for high-risk vendors. We continue to be on track to this commitment.
  • In 2016, the Supply Chain group updated all procurement standard and associated processes. Based on these improvements, the group will work to automate and digitize many of these processes in 2017.
  • Significant progress was made in supporting local procurement at Barrick’s mine sites, with all Barrick sites meeting internal targets for local procurement spending. There is strong collaboration with the CSR group, both at corporate and at sites, to build strong local programs and share knowledge across the organization.

Our Supply Chain

Barrick’s Supply Chain function purchases, stores and delivers $3.5–$4.5 billion annually in supplies, equipment and services to Barrick’s mines and offices. The group sources products ranging from diesel fuel and chemical reagents to IT equipment and haul trucks from more than 20,000 vendors worldwide. 

As part of Barrick’s drive for operational efficiency, we are taking steps to improve procurement efficiency and supply chain practices, which will free up working capital by reducing inventories. We expect to generate additional cash flow through improved integration of site maintenance programs and our global procurement and logistics system.

Barrick has more than 20,000 vendors worldwide.

Supplier Conduct

As part of our commitment to human rights, Barrick developed and implemented a Supplier Code of Business Conduct and Ethics in 2008 and added enhancements to it in 2014. It covers important issues such as anti-bribery, anti-corruption, human rights, health, safety, and environmental protection. It is our intent to deal only1 with suppliers who have accepted the Supplier Code of Business Conduct and Ethics.

Barrick has also put in place a Vendor Onboarding System and Standard to help us do business with those who share our values. Under the Standard, we conduct due diligence on entities receiving funds from Barrick – including suppliers, service providers and civil society groups. The onboarding process covers the Supplier Code of Business Conduct and Ethics, Barrick’s human rights program, and anti-corruption, as well as adherence to the company’s safety and environmental standards.

In 2016, 95% of new suppliers were onboarded under this new Standard.  The process itself may include internal and external questionnaires, a search of the World Check2 database, a request that the vendor register with TRACE International’s due diligence system, TRAC3, and vendor self-certification of its willingness to comply with Barrick’s Supplier Code of Business Conduct and Ethics. Once a vendor is assessed by our supply chain group, it may be added to Barrick’s Approved Vendor Register. Under the system, all new vendors are to be assessed according to the Standard and current vendors are to be assessed every three years. High-risk vendors are to be assessed every year.

1 Low-value transactions, non-repetitive transactions in low-risk areas, and some transactions with local suppliers will not undergo the same rigor as those suppliers being fully certified.

2 World Check is a database that is used to help to identify and manage financial, regulatory and reputational risk. World Check research identifies hidden risk, and reveals connections and associations between illicit parties, to provide a comprehensive view of risk across the global financial crime landscape.

3 The TRAC system captures a range of due-diligence/compliance information submitted online by applicant suppliers. This information is then screened against international watch lists and verified to help meet anti-bribery compliance regulations, as well as compliance with emerging cross-border government regulations, conflict minerals reporting requirements, anti-money laundering laws and forced-labor trafficking laws.

Local Procurement

We believe that responsible economic development can and should improve the lives of stakeholders in the regions where we operate. When done responsibly, economic development is a contributor to a broad spectrum of positive impacts. Through local procurement, for example, the presence of our operations can directly help host communities and individuals enjoy the rights to work, to food and property, and to an adequate standard of living. We developed a Local Procurement Standard in 2013. The Standard was implemented in 2014 under the direction of the Community Relations group.

To support these efforts, Barrick has also put in place a local content framework. The development of the framework was a collaboration with all groups impacted by local content policies, including Supply Chain leads, Community Relations, Human Resource leads, mine General Managers, country Executive Directors, construction managers and Project Directors. This framework outlines the steps needed to develop local employment and local procurement programs, referencing best international practice and embedding lessons learned from other Barrick sites. An important emphasis is on engaging with internal end users on the mine site and making sure local content programs align with their needs and concerns. For more information on our activities regarding local procurement practices, see Social and Economic Development.

Along with buying locally when possible, Barrick often works with regional government economic development committees, where they exist, to help our suppliers diversify so that the eventual closure of a mine will not impose undue hardships on local businesses. See Mine Closure for more information.

Barrick made $220 million in local purchases near our mine sites in 2016.

Date Download Description
May 6, 2015 files/design/bodybg/our-approach.jpg
2014 Responsibility Report
Gold  $ 1,267.80 +11.29 +0.9% Volume: May 26, 2017
ABX NYSE  $ 16.38 +0.09 +0.55% Volume: 11,784,577 May 26, 2017
ABX TSX  $ 22.07 +0.11 +0.5% Volume: 3,153,630 May 26, 2017
Gold  $ 1,267.80 +11.29 +0.9% Volume: May 26, 2017

Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.

World Gold Council MemberMember of ICMM

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